Godawari Power & Ispat Ltd. · NSE:GPIL
Godawari Power & Ispat — Q1 FY23 Earnings Presentation
44 slides from Godawari Power & Ispat's earnings presentation, Jul 29, 2022
Slide 1: Filing cover letter to stock exchanges
LEEiH rm tE5 tFT Hian rfu dr HIIEL GODAWARI POWER & lspAT REF: GPILINSE & BSE/2022/4792 Date: 29.07.2022 To, 1. The Listing Department, 2. The corporate Relation Department, The National stock Exchange of India Ltd, The BSE Limited, Exchange plaza, Bandra Kurla complex, First Floor, Rotunda Building
Slide 2: Q1 FY23 Investor Presentation
Q1 FY23 Investor Presentation 29th July’2022
Slide 3: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Godawari Power and Ispat Limited (the “Company”) solely for the information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, a
Slide 4: Q1FY23 Highlights
Q1FY23 Highlights Strong Consolidated Financial Performance Highest Ever Revenue EBITDA Adjusted PAT* Rs.16,663 Mn Rs.4,608 Mn Rs. 3,269 Mn 16% (QoQ) 16% (QoQ) 5% (QoQ) (Previous best Q3FY22 – Rs.16,066 Mn) *Adjusted for Exceptional Items Strong Operational Performance Highest Ever Quarterly Iron Hi
Slide 5: Update on Stated Guidance
Update on Stated Guidance FY23 Guidance Current Status Iron ore mining – 2.7 to 2.9MnT Iron Ore Mining in Q1FY23 – 758,306T Iron ore Pellets – 2.4MnT Iron Ore Pellets in Q1FY23 – 667,350T Consolidated Capex – Rs.5,000Mn Consolidated Capex in Q1FY23 – Rs.1,500 Mn 78.96% consolidation in Alok Ferro Al
Slide 6: Strategies changed to tackle Export Duty
Strategies changed to tackle Export Duty Particulars Current Status Change in Volume Mix Increased sales of sponge iron, steel billets, MS rounds, HB wire, Ferro alloys. Company was mainly exporting iron ore pellets & wire rods prior to imposition of export duty. Company has a competitive advantage
Slide 7: Strong Future Outlook - Low-cost Capacity Expansion
Strong Future Outlook - Low-cost Capacity Expansion Capacity FY22 Capex (in Rs. Mn) Particulars Current Status FY22 FY23 Total FY22 Q1FY23 9MFY23 Mining production ramp-up in 2nd half. Iron Ore Mining, Beneficiation plant at mine to commission in Crushing & 2.1MTPA 3.05MTPA 1250 340 220 690 H2FY23.
Slide 8: Carbon Footprint Reduction Strategy
Carbon Footprint Reduction Strategy Capacity Capex (in Rs. Mn) Particulars FY23 Total FY22 Q1FY23 9MFY23 Current Status Solar PV Projects The Plant is ready in all respects GPIL - Rajnandgaon 70 MW 2600 2250 225 125 except synchronization with the grid. Land acquisition in process. Solar modules del
Slide 9: Drivers of Performance in Q1FY23
Drivers of Performance in Q1FY23 Particulars Current Status • Iron ore mining as well as iron ore pellets production has increased by 13% & 9% QoQ. Production Volumes • Also, there has been a significant increase in production of other products like sponge iron, steel billets, MS Rounds, HB Wires •
Slide 10: Production Summary
Production Summary Iron Ore Mining Iron Ore Pellets - GPIL Sponge Iron 758,306 667,350 161,001 673,397 143,542 559,070 602,850 613,000 67,787 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Steel Billets M.S. Rounds/TMT Ferro Alloys 3,898 3,046 3,145 63,931 115,240 11,083 12,089 93,47
Slide 11: Sales Volume Summary
Sales Volume Summary Iron Ore Pellets - GPIL Sponge Iron Steel Billets 50,262 508,187 43,942 388,937 410,667 34,174 5,378 21,641 16,652 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 M.S. Rounds/TMT Ferro Alloys Galvanized Fabricated Products 4,974 3,746 2,505 36,009 21,628 29,414 32
Slide 12: Realisation Summary
Realisation Summary (Ex plant realisation excluding export freight and expenses) Iron Ore Pellets - GPIL Sponge Iron Steel Billets 13,942 34,862 34,457 53,076 11,905 11,596 28,693 47,252 41,292 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 Q1FY22 Q4FY22 Q1FY23 M.S. Rounds/TMT Ferro Alloys - HFAL Galvani
Slide 13: GPIL Consolidated - Profit & Loss
GPIL Consolidated - Profit & Loss All figures in INR Mn Particulars Q1FY23 Q4FY22 QoQ% Q1FY22 YoY % FY22 Net Sales 16663 14379 16% 11,262 48% 53,992 Total Expenses 12055 10408 16% 5,531 118% 35,350 Other Income 161 180 -11% 10 1573% 294 EBIDTA 4608 3971 16% 5,731 -20% 18,642 EBIDTA Margin (%) 28% 28
Slide 14: GPIL Standalone Profit and Loss
GPIL Standalone Profit and Loss All figures in INR Mn Particulars Q1FY23 Q4FY22 QoQ% Q1FY22 YoY % FY22 Net Sales 14,827 13,002 15% 11,262 33% 50,746 Total Expenses 10,658 9,283 16% 5,531 94% 32,936 Other Income 114 100 14% 9 1192% 183 EBIDTA 4,169 3,720 15% 5,731 -25% 17,810 EBIDTA Margin (%) 28% 29
Slide 15: Hira Ferro Alloys Limited – Financial Performance
Hira Ferro Alloys Limited – Financial Performance All figures in INR Mn Particulars Q1FY23 Q4FY22 QoQ% Q1FY22 YoY % FY22 Net Sales 1,875 1,496 25% 1,166 61% 5,932 Total Expenses 1,551 1,264 23% 883 76% 4,392 Other Income 47 62 -24% 8 488% 151 EBIDTA 324 232 40% 282 15% 1,540 EBIDTA Margin (%) 17% 16
Slide 16: Captive Mining Provides Competitive Edge
Captive Mining Provides Competitive Edge 8,500 7,300 6,800 4,346 4,270 3,500 3,200 3,000 2,750 2,800 3,150 2,600 2,462 2,310 2,375 2,050 2,181 1,800 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 Market Price of Iron Ore Captive Ore Landed Cost
Slide 17: Achieved Net Debt Free Status
Achieved Net Debt Free Status GPIL now has a Net Cash Balance Sheet Consolidated Net Debt (Rs Mn) 19,287 18,207 16,043 14,355 7,197 -5,645 -5,604 FY17 FY18 FY19 FY20 FY21 FY22 Q1FY23 Short term borrowings are not included in calculation of Net Debt.
Slide 18: GPIL – Consolidated Balance Sheet
GPIL – Consolidated Balance Sheet All figures in INR Mn Particulars 31.03.2022 31.03.2021 Particulars 31.03.2022 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 14,129 19,199 (a) Equity share capital 658 341 (b) Capital work-in-progress 6,427 1,37
Slide 19: GPIL – Standalone Balance Sheet
GPIL – Standalone Balance Sheet All figures in INR Mn Particulars 31.03.2022 31.03.2021 Particulars 31.03.2022 31.03.2021 ASSETS EQUITY AND LIABILITIES Non Current assets EQUITY (a) Property, Plant and Equipment 12,995 13,135 (a) Equity share capital 682 341 (b) Capital work-in-progress 4,164 540 (b
Slide 20: Building a Strong Organisation
Building a Strong Organisation All figures in INR Mn Cash Flows from Operation Capex Free Cash Flows 13,303 9,688 7,043 6,063 5,498 5,508 7,753 4,511 2,212 1,634 1,755 1,051 530 760 396 146 FY17 FY18 FY19 FY20 FY 21 FY22 827 -2,975
Slide 21: Strong focus on Sustainability
Strong focus on Sustainability Strengthening the ESG Framework Aligned with United Nations’ 10 principles for manufacturing responsibility and environmental sustainability Environment Responsibility Social Responsibility Governance Framework o Investing in o Strong community o Strategic Clarity – en
Slide 22: International & Domestic Tailwinds
International & Domestic Tailwinds International Market o From $158/t on 1st April, iron ore prices have fallen to $100/t, as recession worries take hold. The demand and consumption of steel and other commodities is subdued in China due to covid and real estate crisis and in rest of the world due to
Slide 23: APPENDIX
GODAWARI POWER & ISPAT e APPENDIX e Lite eed IL led
Slide 24: FY22 : Landmark Year – PAT Doubled
FY22 : Landmark Year – PAT Doubled Record High Revenue, EBITDA and PAT Net Debt Free Status – Net Cash Company • Became long term Net Debt Free on Standalone basis in Q1FY22 ; Net Debt Free on Consolidated Achieved Zero Focus on Reducing Carbon Footprints basis in Q4FY22 Long Term Debt Status • Sett
Slide 25: Unique Presence Across Steel Value Chain
Unique Presence Across Steel Value Chain Asset Capacity FY22 Utilisation (%) Asset Capacity FY22 Utilisation (%) Iron Ore MS 0.4 MT 39% Mining 3.05 MT Rounds 76% Iron Ore HB 24% 2.4 MT 92% 0.10 MT 99.98% Pellets Wires 65% Sponge 93% Ferro 16,500 T 0.5 MT Alloys 60500* T Iron 99% 83% 75% Steel Power
Slide 26: Building on Our Competitive Edge
Building on Our Competitive Edge 4x Increase in Reserves of Iron Ore mines to approx 165MnT; exploration still in progress. Mine life of 35+ years remaining at old ALLPPT Layout royalty rates. Plan to enhance Iron Ore Clean Text Slide for Mining Capacity to 5MnT over next 2-3 years and your Presenta
Slide 27: Increased Captive Consumption Provides Significant Margin Expansion
Increased Captive Consumption Provides Significant Margin Expansion Significant captive mining capacity aid in lowering costs & improving margins Iron Ore Production (MT) Captive Mining • Increased captive mining to aid in lowering cost and improving margins. Started operations at Boria Tibu Mine Po
Slide 28: Simplifying Group Structure
Simplifying Group Structure Associates JVs Godawari Power and Ispat Ltd. 37.85% 33.30% Ardent Steel Raipur Infrastructure Co 91.82% 100% 25.93% Hira Ferro Alloys Ltd. Godawari Energy Limited Chattisgarh Captive Coal Mining 8.29% 35.36% 78.96% 12.53% Chhattisgarh Ispat Bhumi Alok Ferro Alloys Ltd. No
Slide 29: Large Portfolio of Long-life Assets
Large Portfolio of Long-life Assets Pelletisation Plant Odisha Keonjhar: 0.8 mn MTPA Siltara Integrated Plant Chhattisgarh 3.3 mn MTPA Iron ore beneficiation 2.4 mn MTPA Iron ore pellets 0.5 mn MTPA Sponge iron 0.4 mn MTPA Steel billets 0.2 mn MTPA Wire-Rod Mill 0.3 mn MTPA HB wire 73 MW Captive Ppo
Slide 30: Detailed Production Summary
Detailed Production Summary Description of Goods M.T./ KWH Q1FY23 Q4FY22 QoQ (%) Q1FY22 YoY (%) FY22 % Achieved Iron ore Mining M.T.s 758,306 673,397 13% 559,070 36% 2,312,888 33% Iron ore Pellets - GPIL M.T.s 667,350 613,000 9% 602,850 11% 2,399,500 28% Sponge Iron M.T.s 161,001 67,787 138% 143,542
Slide 31: Detailed Sales Volume Summary
Detailed Sales Volume Summary Description of Goods M.T./ KWH Q1FY23 Q4FY22 QoQ (%) Q1FY22 YoY (%) FY22 % Achieved Iron Ore Pellet - GPIL M.T.s 410,667 508,187 -19% 388,937 6% 1,664,030 25% Sponge Iron M.T.s 50,262 21,641 132% 5,378 835% 126,371 40% Steel Billets M.T.s 43,942 16,652 164% 34,174 29% 9
Slide 32: Detailed Realisation Summary
Detailed Realisation Summary (Ex plant realisation excluding export freight and expenses) Description of Goods INR per Unit Q1FY23 Q4FY22 QoQ (%) Q1FY22 YoY (%) FY22 Iron Ore Pellet - GPIL INR/M.T.s 11,596 11,905 -3% 13,942 -17% 12,390 Sponge Iron INR/M.T.s 34,457 34,862 -1% 28,693 42% 31,746 Steel
Slide 33: Shareholding Pattern as on 30th June 2022
Shareholding Pattern as on 30th June 2022 Shareholding Pattern Break up of Shareholding Pattern Public Shareholding No of Shares % of Total Sh. Institution 3345635 2.37 Non Institution 42455941 30.13 32.50% Total 45801576 32.50 Promoter Shareholding No of Shares % of Total Sh. 67.50% Pledge 0 0 Free
Slide 34: Board of Directors
Board of Directors Mr. Shashi Kumar (Chairman & Mr. BL Agarwal (Managing Independent Director) Director) 4+ decades of experience; B.Sc. In 1st generation entrepreneur with Mining Engineering; Advisor to almost 4 decades of experience; NTPC, IFFCO & Chhattisgarh Power Graduated as an electronic; sta
Slide 35: Board of Directors
Board of Directors Mr. Vinod Pillai (Non-Executive Mr. B N Ojha (Independent Director) Director) Bachelor of Electrical Engineering 2 decades of experience in Sales, from BIT Sindari with over 4 Administration, Liaison & Logistics; decades of experience; Member of Commerce graduate; Export Committee
Slide 36: Hira Ferro Alloys Limited
Hira Ferro Alloys Limited Hira Ferro Alloys ltd is a manufacturer of ferro alloys Products Capacity Ferro Alloys 60,500 TPA Captive Thermal Power 20 MW Bio Mass (IPP) 8.5 MW Wind Power (IPP) 1.5 MW Near Term Growth Triggers: o Asset optimisation: Production capacity increasing over last few quarters
Slide 37: Growth Strategy Clearly Outlined
Growth Strategy Clearly Outlined What We Are What We Wish to Be • Amongst India’s best mid- • Carbon neutral in steel sized steel companies (by production – increase Sustainable product quality, margins, Most Profitable renewable energy material efficiency, asset consumption; improve energy utilisat
Slide 38: GPIL Standalone – Past Operational Performance at a Glance...
GPIL Standalone – Past Operational Performance at a Glance... Trend of Iron Ore Mining (mt) Trend of Pellet Production (mt) 2,399,500 2,312,888 1,933,250 1,547,384 2,256,550 1,999,150 1,841,050 1,699,920 1,579,693 1,657,629 1,580,850 1,532,200 1,495,100 326,358 1,175,090 902,550 693,612 657,328 619,
Slide 39: GPIL Standalone – Past Operational Performance at a Glance...
GPIL Standalone – Past Operational Performance at a Glance... Trend of Steel Production (mt) Trend of Slico Managanese (mt) 350,865 16152 344,610 327050 14,178 298,418 13,70013,13613,772 188,190 11,11611,403 10,537 10,517 227,581 204,162 197,596 9,434 185,021 177,970 FY 13 FY 14 FY 15 FY 16 FY 17 FY
Slide 40: Past Sales Realisations
Past Sales Realisations Iron ore Pellet Sponge Iron 12,390 34,457 11,596 31,746 9,017 8,607 7,872 7,798 20,964 20,645 6,809 7,091 19,736 18,277 18,934 16,897 16,678 5,067 5,365 13,310 12,383 4,360 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 Q1FY23 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19
Slide 41: Past Sales Realisations
Past Sales Realisations M.S. Round H.B. Wire 55,030 57,551 48,092 47,981 38,740 37,335 35,373 33,327 28,063 40,666 33,265 33,409 32,460 38,332 36,169 36,898 34,015 35,182 27,034 34,683 26,330 28,080 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY19 FY20 FY21 FY22 Q1FY23 FY 13 FY 14 FY 15 FY 16 FY 17 FY 18 FY
Slide 42: GPIL Consolidated – Historical Profit & Loss
GPIL Consolidated – Historical Profit & Loss All figures in INR Mn Particulars FY22 FY21 FY20 FY19 FY18 Net Sales 53,992 39,576 32,885 33,216 25,274 Total Expenses 35,350 28,206 26,643 25,323 19,305 Other Income 294 34 47 58 87 EBITDA 18,642 11,370 6,289 7,952 6,056 EBITDA Margin (%) 35% 29% 19% 24%
Slide 43: GPIL Consolidated – Historical Balance Sheet
GPIL Consolidated – Historical Balance Sheet All figures in INR Mn Particulars FY22 FY21 FY20 FY19 FY18 Net Worth 34,422 21,080 15,026 13,364 10,837 Non‐Controlling Interest 1,298 724 1,773 1,672 1,604 Debt Long Term Debt 101 7,711 14,645 16,431 18,730 Short Term Debt 4,183 1,254 1,604 1,393 1,344 O
Slide 44: Thank You
Thank You Investor Relations Contact: Company Contact: Sana Kapoor Sheetal Khanduja Sanjay Bothra YC Rao Go India Advisors Go India Advisors sanjay.bothra@hiragroup.com Yarra.rao@hiragroup.com sana@GoIndiaAdvisors.com sheetal@GoIndiaAdvisors.com Godawari Power and Ispat Ltd. Godawari Power and Ispat
Godawari Power & Ispat — Q1 FY23 Earnings Presentation on 6ix